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RANT: My day rate is my rate, not your rate

It isn't often I get frustrated enough to write a ranting blog
post but I've been getting pretty steamed up with some of the
communication I've been getting recently from prospective
clients.

I get a fair amount of email each week asking me if I'm
interested in working on a project. Luckily I'm privileged to be
busy right now and I'll usually - politely - decline.
Occasionally, if the project seems of interest and I have the time
to commit to it I'll write back outlining some initial thoughts, my
terms of business and importantly my hourly and day rates.

Some may question the fact that I get down to money so quickly,
but I've become quite adept at spotting emails where budget is
likely to cause issues. Many of these emails even start with
sentences like "I need some cheap Umbraco/TeamSite development
work", so I think it is important to put my rates out there to save
everyone some time.

Ordinarily if costs are an issue myself and the potential client
agree that our working together on the project in question isn't
going to work out and bid each other a polite good day. From time
to time I'll get a reaction along the lines of "wow, that's
expensive" and I'll usually take the time to explain that a hair
stylist with 15 years experience is likely to give a better haircut
than a trainee barber. This sometimes gets mistaken for arrogance
but I do stand by the metaphor.

By this point you are probably thinking I'm charging silly
extortionate rates but I'm not. I keep an eye on the market and
charge a good value price that is fair for a contract CMS
architect/developer with 12 years commercial experience.

So where's the beef? Well, more and more frequently I'm getting
individuals who decide to confront me. These people try to tell me
how to run my business and what I should charge. Here are some
genuine quotes from emails that I've received in the past 6
months.

"I could get that done for £300 with Joomla" - (A whole
website)

"You are being ridiculous - nobody will pay that"

"You should be careful with the recession it is very likely
that you will be out of a job soon"

"You've wasted my time which I am annoyed about you should be
more realistic about your expectations in future"

Those are a few of my "favourites" and there are many more but
the point is that I am getting sick of defending myself when I
shouldn't have to.

In order to end silly and futile process of people trying to
dictate to me how I should earn my living, future such emails will
be responded to with a link to this post and further - negative -
correspondence ignored.

In case you are reading this as a result of receiving such an
email from me here is all that you need to know. If you don't want
to work with me then that is fine but
never make the mistake of telling me what
I am worth. If budget is an issue and you are prepared to
compromise quality to reduce the price of your project I may even
be able to recommend someone. What I won't do any longer is defend
myself against personal attacks, such attacks will be greeted with
a barrage - of silence.

Comments

Darren Ferguson

March 25, 2011

@Janus - I'd argue that my rate only makes sense when given along with some thoughts and plans for a project. It doesn't really do anything when published in isolation.

Janus Boye

March 25, 2011

Interesting.
Have you consider putting your usual daily/hourly rate on your website?
I'm guessing this would save you some time and frustrated emails.
Cheers, Janus

Paul Marden

March 25, 2011

IMHO this debate about price is simple economics. If you really are over pricing your product then there will be "money on the table" and someone will step in and offer your product at the right quality, right time and crucially a price the customers can bear.
But that's not the case, you have sufficient demand, there is no unused inventory in your business (spare time that could earn money), so why compromise on price.
My business is in its infancy and I tend to price on a number of factors, including the supply of time I have available, the demand for that time, and what I think the customer can bear.
My preference is to make sure the requirements are well defined and working at a fixed price, because the client is protected against the risk of the project overrunning and in reality I am usually rewarded for accepting the risk. But the trick then is to spot the weakly defined projects that can sap your time and potential earnings.

Søren Sprogø

March 25, 2011

Haha, I get those too from time to time.
I usually tell them: "If you think my services are expensive, it must mean you think you can get the same service cheaper elsewhere. I wish you good luck with that. In fact, please tell me who it is, so I can start hiring them too".
People usually get the point with that.
In my 15+ years of experience, people who argue too much over price your price is almost always the same people who are "time wasters", and trying to get a lot more put into a project that you originally agreed upon.
I myself am quite offended when people think I'm trying to score a ton of money off them. No, I honestly tell you what I think is needed and what it costs.
They really don't get me or what my business is about.
So I fully support your rant! But I choose not to get annoyed by those prospective customers, and instead reject & ignore them as quickly as possible.

Tristan Renaud

March 25, 2011

I have always been extremely in favor of high daily rates because - as you wrote - "my rate is my rate not the client's one". We are assuming it. Period.
The higher the rate is, the better you need to be! A client will demand a lot, I am fine with that.
And it also means your work is useful to your clients at this rate. We are established and skilled professionals, so no doubt about the fact we are useful to our clients.
In a "2.0" world, transparency and reputation do matter so if you can work at this price, it is just because it is a fair and useful price.
Clients decide with who they work, suppliers decide at what price and what conditions. That's not politically very correct to write, I agree, we are here to serve clients but as a matter of fact, that's just the way things work in this world!
So in conclusion, Yes I do agree with both of you... And thanks for speaking about this issue!